Former US President Donald Trump is facing a precarious situation as he struggles to post a $454 million bond in a civil fraud case. Mr Trump's lawyers told a New York appeals court that the former US President is not able to find an insurance company to underwrite his bond to cover the massive judgment against him in the New York attorney general's civil fraud case.
Mr Trump's attorneys said he has approached 30 underwriters to back the bond, which is due by the end of this month, CNN reported.
"The amount of the judgment, with interest, exceeds $464 million, and very few bonding companies will consider a bond of anything approaching that magnitude," Mr Trump's lawyers wrote. (Mr Trump himself was ordered to pay $454 million; the $464 million includes the disgorgement for his adult sons Don Jr. and Eric.)
Gary Giulietti, an insurance broker who testified on behalf of Mr Trump during the civil fraud trial, signed an affidavit asserting that obtaining a bond for the full amount "is practically impossible."
According to Trump's legal team, potential underwriters are demanding cash to support the bond, rather than properties.
Mr Trump's lawyers have asked the appeals court to delay posting the bond until his appeal of the case is over, reasoning that the value of Mr Trump's properties far exceeds the judgment, CNN reported. If the appeals court rules against him, Mr Trump asked the court to delay his posting the bond until his appeal to New York's highest court is heard.
Mr Trump must post the bond as part of his appeal process against a civil court judgment. The bond serves as a guarantee that he will have the necessary funds to pay the penalty if he loses the appeal. It is standard legal procedure to prevent appellants from evading financial penalties.
What happens if Mr Trump can't post the $454 million bond?
If Donald Trump doesn't meet the deadline to post the mandated $454 million bond, New York Attorney General Letitia James will have the authority to commence the seizure of Mr Trump's properties and other assets to guarantee the secured judgment amount.
A bonding company would be on the hook for any payout if Trump loses his appeal and proves unable to pay, Reuters reported.
Mr Trump said Monday he thought it was "practically impossible" for him to post the bond.
In a post on Truth Social, he claimed the size of the bond is "unConstitutional, un-American, unprecedented, and practically impossible for ANY Company, including one as successful as mine. The Bonding Companies have never heard of such a bond, of this size, before, nor do they have the ability to post such a bond, even if they wanted to."
Mr Trump, 77, has denied wrongdoing and vowed to appeal the judgment, which threatens his family's real estate empire.
He must post cash or a bond within 30 days of Engoron's formal entry of the order on Feb. 23 or risk the state seizing some of the Trump Organization's assets to ensure James can collect. Thirty days end on March 25.
Trump this month posted a $91.6 million bond to cover an $83.3 million defamation verdict for the writer E. Jean Carroll while he appeals, in a case that arose from his branding her a liar after she accused him of raping her decades ago. He has denied wrongdoing.
He has also pleaded not guilty in four criminal cases stemming from his efforts to overturn his 2020 loss to Biden, his handling of government documents after leaving office in 2021, and hush money paid before his 2016 election win to a porn star who said she had a sexual encounter with him.
